HUNTSVILLE, Ala — Avocent Corp. said it expects first quarter revenues to be within a range of $132 to $135 million (all figures in U.S. dollars) compared with $94.5 million reported in the first quarter of 2006 and compared to pro forma revenue of approximately $131 million for the first quarter of 2006. (The pro forma revenue assumes that both LANDesk and Cyclades, two companies acquired during 2006, had been owned for the entire first quarter of 2006.)
Avocent makes IT management solutions including KVM (keyboard, video, mouse) switch and remote monitoring products.
The LANDesk Division’s revenues increased five to seven per cent to approximately $23.5 to $24 million and the Management Systems Division’s revenues increased one per cent to approximately $105 million.
“Revenue was below our expectations due to several factors including some softness in overall IT spending and the related slowing of channel activity, project delays by some customers and a lower level of economic activity than we had expected,” stated John R. Cooper, Avocent’s chairman and chief executive officer.
“While we have noted that some organizations have reduced their forecasts of IT spending in recent weeks, our own experience to this point indicates that projects remain planned and budgeted but have been delayed in some cases as customers take additional time to contemplate industry developments and, to some extent, macroeconomic factors,” Cooper said.
The company expects to announce its first quarter results on April 19, when it will host a conference call and Webcast to discuss the quarter’s results in more detail.
